Mr W was selling apartments in a block of flats. Mr D, an estate agent, sought commission. W argued that D had not had signed his terms, and that therefore no contract existed. The court considered whether a contract had come into being when a major term remained unresolved.
Held: Mr D’s appeal succeeded. Whether a contract was in place was an objective question. That was established. The courts are reluctant to find an agreement is too vague or uncertain to be enforced where it is found that the parties had the intention of being contractually bound and have acted on their agreement. The parties would have intended that commission be paid on the sale. W had found the Housing Association through the contact and had gone on to complete the sale to it.
D having failed to comply with his obligations under the 1979 Act, his award was reduced accordingly.
Lord Wilson, Lord Sumption, Lord Carnwath, Lord Briggs, Lord Kitchin
[2019] UKSC 4, UKSC 2016/0223
Bailii, Bailii Summary, SC, SC Summary, SC Summary video, SC 20181011 am Video
Estate Agents Act 1979 18(1)
England and Wales
Citing:
Appeal from – Wells v Devani CA 15-Nov-2016
Claim for agent’s commission on sale of flats. The defendant developer had entered into a sole agency agreement with W. Unsold flats were eventually sold to an Housing association on an introduction by a third party agent., the claimant, who now . .
Cited – Nightingale and others v Parsons CA 9-Mar-1914
In 1908 the plaintiff, who was a house agent, was employed by the defendant to find a tenant for a house at a rent of 120 pounds a year or a purchaser for 2500 pounds. The plaintiff found a tenant who took the house for a term of three years with . .
Cited – James v Smith CA 1931
The defendant, the owner of a hotel, wrote a letter to the plaintiff, an estate agent, saying that it would sell the property at a specified price and would pay a commission if the property was sold at that price. The plaintiff introduced a . .
Cited – Marks and Spencer Plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd and Another SC 2-Dec-2015
The Court considered whether, on exercising a break clause in a lease, the tenant was entitled to recover rent paid in advance.
Held: The appeal failed. The Court of Appeal had imposed what was established law. The test for whether a clause . .
Cited – RTS Flexible Systems Ltd v Molkerei Alois Muller Gmbh and Company Kg (UK Production) No 2 – Order and Costs SC 21-Jul-2010
The main judgment had not attempted to settle all issues between the parties, and much remained to be done. Any order would not be a final one. As to costs, each party had succeeded in one respect or another, but ‘at the end of this whole process . .
Cited – Little v Courage Ltd CA 6-Jan-1995
The tenancy contained an option for the tenant to renew, subject to agreement being reached with the brewer on a business plan. The tenant said he wished to renew, but the brewer did not present a business plan or agreement, and then the landlord . .
Cited – Fowler v Bratt CA 1950
the plaintiff, a house agent, was instructed by the defendant to find a purchaser of his house and agreed to pay a commission on the price. Subsequently the defendant decided not to go through with the sale and the plaintiff brought proceedings for . .
Cited – Dennis Reed Ltd v Goody CA 1950
Two home owners instructed the plaintiff agents to ‘find a person ready, willing and able’ to purchase their property and agreed to pay the agents a commission upon them introducing such a person. The agents found a prospective purchaser but he . .
Cited – Scammell and Nephew Ltd v HJ and JG Ouston HL 1941
There was an agreement for a purchase on ‘hire-purchase terms’ It was challenged as being too uncertain.
Held: There were many possible forms of such an agreement. The agreement was void for uncertainty. Lord Wright: ‘There are in my opinion . .
Cited – Luxor (Eastbourne) v Cooper HL 1941
The vendor company had instructed agents to sell properties on its behalf and had agreed to pay commission on completion of the sale. The sale was agreed with a prospective purchaser introduced by the agents. Before the sale was completed, the . .
Cited – Midgley Estates v Hand CA 1952
An estate agent’s commission is normally payable upon completion of the sale, but that does not prevent parties from agreeing that it should be payable upon a different event. The question depends on the construction of the particular contract.
Contract, Agency
Updated: 10 January 2022; Ref: scu.633294